Image Sensing Systems Appoints Tufto as President and CEO

Image Sensing Systems has appointed Kris Tufto as president and chief executive officer effective immediately. Tufto previously served as interim president and CEO, and has been a member of the board since September 2011. Image Sensing Systems is a provider of software-based detection solutions for the Intelligent Transportation Systems (ITS) sector. The company is headquartered in St. Paul, Minnesota.

PRESS RELEASE

Image Sensing Systems, Inc. (Nasdaq:ISNS), announced today that the board has
appointed Kris Tufto as president and chief executive officer (CEO),
effective immediately. Tufto previously served as interim president and
CEO, and has been a member of the board since September 2011. He will
continue in his role as board director.

“Kris’ depth of experience in software, technology and product
marketing positions him as the clear choice to lead this company and
best capitalize on future growth opportunities,” said Jim Bracke,
chairman of the board. “The board is confident that Kris can return the
company to historical profitability levels and, in the long term,
maximize shareholder value. We are pleased to have his fresh leadership
perspective and breadth of experience.”

Tufto has significant leadership experience in technology companies. He
has been a member of the board of Sajan, Inc., a publicly-held company,
since February 2010. From 2010 to 2012, Tufto was chief revenue officer
at Code42, a software solutions and data protection company.
Previously, he was chief executive officer at MarketingBridge, a global
channel marketing company, and a consultant at W3i, a provider of
application and mobile marketing solutions. Tufto has also served in
leadership positions for various technology companies.

“During my time at Image Sensing Systems, I have found that the company
has strong assets including a market-leading product offering, a
state-of-the-art technology platform and a talented team of employees.
Yet, I believe that certain of our assets continue to underperform
their potential. I’m looking forward to leading Image Sensing Systems
in taking advantage of the opportunities that lie ahead,” said Tufto.

About Image Sensing

Image Sensing Systems, Inc. is a provider of software-based detection
solutions for the Intelligent Transportation Systems (ITS) sector and
adjacent markets including security, police and parking. The company
has sold more than 125,000 units of its industry leading Autoscope(R)
machine-vision, RTMS(R) radar and CitySync automatic number plate
recognition (ANPR) products in over 60 countries worldwide. This depth
of experience coupled with the breadth of our product portfolio
uniquely positions Image Sensing Systems to provide powerful hybrid
technology solutions and to exploit the convergence of the traffic,
security and environmental management markets. The company is
headquartered in St. Paul, Minnesota. Visit the company’s website at
imagesensing.com.

The Image Sensing Systems, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13894

Safe Harbor Statement: Statements made in this release concerning the
Company’s or management’s intentions, expectations, or predictions
about future results or events are “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements reflect management’s current expectations or beliefs,
and are subject to risks and uncertainties that could cause actual
results or events to vary from stated expectations, which variations
could be material and adverse. Factors that could produce such a
variation include, but are not limited to, the following: the inherent
unreliability of earnings, revenue and cash flow predictions due to
numerous factors, many of which are beyond the Company’s control;
developments in the demand for the Company’s products and services;
relationships with the Company’s major customers and suppliers; the mix
of and margins on the products we sell; unanticipated delays, costs and
expenses inherent in the development and marketing of new products and
services, including ANPR products; adverse weather conditions in our
markets; the impact of governmental laws and regulations; increased
international presence; our success in integrating acquisitions; and
competitive factors. Our forward-looking statements speak only as of
the time made, and we assume no obligation to publicly update any such
statements. Additional information concerning these and other factors
that could cause actual results and events to differ materially from
the Company’s current expectations are contained in the Company’s
reports and other documents filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 2011 filed in March 2012.

CONTACT: INVESTORS
Greg Smith, Chief Financial Officer
Image Sensing Systems, Inc. Phone: 651.603.7700

MEDIA
Al Galgano
Padilla Speer Beardsley Phone: 612.455.1720